November 9, 2020 - An amended complaint was filed.

May 20, 2020 - An investor in shares of Elanco Animal Health Incorporated (NYSE: ELAN) filed a lawsuit in the U.S. District Court for the Southern District of Indiana over alleged violations of Federal Securities Laws by Elanco Animal Health Incorporated in connection with certain allegedly false and misleading statements made between January 10, 2020 and May 6, 2020.

Greenfiled, IN based Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures, and markets products for companion and food animals.

Elanco Animal Health Incorporated reported that its annual Total Revenue rose from over $3.066 billion in 2018 to over $3.071 billion in 2019, and that its Net Income declined from $86.5 million in 2018 to $67.9 million in 2019.

On May 7, 2020, Elanco Animal Health Incorporated reported its financial and operating results for the first quarter of 2020. For the quarter, Elanco Animal Health Incorporated reported GAAP earnings per share of -$0.12, missing consensus estimates by $0.18, and revenue of $657.7 million, missing consensus estimates by $62.49 million. Explaining the Company’s disappointing results, Elanco Animal Health Incorporated’s President and Chief Executive Officer cited, among other factors, “distributor performance” and stated that Elanco Animal Health Incorporated intended “to tighten our approach across many facets of our distributor relationships.”

Shares of Elanco Animal Health Incorporated (NYSE: ELAN) closed on May 13, 2020 at $19.29 per share.

According to the complaint the plaintiff alleges on behalf of purchasers of Elanco Animal Health Incorporated (NYSE: ELAN) common shares between January 10, 2020 and May 6, 2020, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between January 10, 2020 and May 6, 2020, the Defendants failed to disclose to investors that, after consolidating its distributors from eight to four, the Company increased the amount of inventory, including companion animal products, held by each distributor, that Elanco’s distributors were not experiencing sufficient demand to sell through the inventory, that, as a result, the Company’s revenue was reasonably likely to decline, that, as a result of the foregoing, Elanco would reduce its channel inventory with respect to companion animal products, and that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.